No more new KRIM stores after RM100m losses, new operator says

 |Feb 7, 2018

PETALING JAYA: There will not be any new stores under the revamped Kedai Rakyat 1Malaysia (KR1M) 2.0 project, announced the new company managing it, Tunas Manja Group (TMG).

This, after the previous operator reportedly incurred losses of about RM100 million after taking part in the KR1M project.

Prime Minister Datuk Seri Najib Razak announced the company as the government’s new strategic partner to run the KR1M 2.0 project on Sunday.

TMG is a supermarket chain that is based in Kuantan. It has been operating since 1986 and has a chain of supermarkets across six states in peninsular Malaysia.

TMG’s head of operations for the KR1M 2.0 project Muhammad Haidir Ravi said the company will be using 21 of its 39 outlets across the country to sell the KR1M-labelled items.

“We will include these KR1M-labelled items in our stores and sell them along with other brands we have on the shelves.

“This way, we can minimise our cost of operating,” he was quoted as telling Free Malaysia Today, in response to questions on how the supermarket chain hoped to avoid making losses in the KR1M project like the previous operator.

The government is said to have not subsidised the cost of the items but only provided the premises and shelves and the cost of shipping items to East Malaysia.

Mydin managing director Ameer Ali Mydin admitted that he might have been “naive” when he decided to join the government project that aimed to help Malaysians cope with the rising cost of living.

“I think the intention was very noble. The government had very noble intentions. We also thought naïvely that since we are the largest local player, we should take this initiative.

“Mydin was making RM50-RM70 million a year. So, I said, let’s do it as part of our corporate social responsibility (CSR).

“How much money can you lose anyway?”

Mydin participated in the government programme from its inception in 2011 but withdrew in August last year.

Mydin was accused by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi last year of selling their products at KR1M above market prices.